Class 11 :business studies: chapter 12: Taxation
Introduction to tax Tax is a compulsory financial charge imposed by the government on individuals, businesses, and organizations to generate public revenue . It is collected without any direct or immediate benefit to the taxpayer. Taxes are used by the government to finance public expenditure such as development projects, education, health services, infrastructure, defense, and social welfare programs. Tax is an important instrument of fiscal policy , helping the government to reduce income inequality, control inflation, and promote economic stability and growth . Every citizen and business is legally required to pay tax according to the prevailing tax laws of the country. Alright, let’s go full detail , clean and exam-ready , exactly matching your book diagrams. This will comfortably fetch 8–10 marks ЁЯСН Features / Characteristics of Tax 1. Compulsory Payment Tax is a mandatory payment imposed by the government on individuals, households, and business organizatio...